SEC Files Suit Charging Ponzi Scheme

The SEC filed a civil injunctive action against Kay Services, LLC, and its sole owner and officer, Marcia Sladich, alleging that they orchestrated a Ponzi scheme raising more than $10 million from at least 1,000 victims, many of whom were members of the Family Federation for World Peace, formerly known as the Unification Church.  The complaint alleges that Sladich repeatedly told investors that their money would be invested in domestic and international real estate and promised investors 50–100% guaranteed return on their investment in one year. She also promised investors additional payments for every investor they referred.  Throughout the scheme, Kay Services had no revenue-generating business or assets. The complaint charges the defendants with violating federal securities laws, seeks an order permanently enjoining the defendants from committing future violations and a final judgment ordering the individual defendants to disgorge their ill-gotten gains and to pay civil penalties.